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The XYZ Corporation owns and cperates hotels and casinos irichuding the XYZ Grand and the...

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Accounting

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The XYZ Corporation owns and cperates hotels and casinos irichuding the XYZ Grand and the Bellagio in Las Vegas, Nevada. As of a recent year, XYZ reported accounts receivable of $711,000 and allowance for doubtul accounts of $128,691. Patient Care manufactures and selis a wide range of healthcare products including Band-Aids and Tylenol. As of a recent year, Patient Care reported accounts receivable of $818,000 and allomance for doubtful accounts of $44,172. Round vour answers to one decimat place. a. Compute the percentage of the aliowance for doubtful accounts to the accounts receivabie for The XYZ Corporation. b. Comoute the percentage of the allowance for doubtful sceourts to the accounts receivabie for patient Care. C. Poss bie reasons for the difference in the two ratios cemputed in (a) and (b) include: a. Casina operators historically lose money on operations. b. Casino operators nave lirger accounts recelvabie. c. Individuals whe may have adequate creditworthiness could overextend themselves and lose more than they can afford if they get caught up in the excltement of gambing a. Cosino operations experience preater ba debt risk, since it is diffcut to contrai the creditworthiness of customers entenng the casina. romerwither

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